The International Chamber of Commerce - Jordan (ICC - Jordan) held a seminar for the revised version of the Uniform Rules for Demand Guarantees (URDG) - bank guarantees - (URDG) on June 21, 2010. The International Chamber of Commerce –Syria participated in the seminar with a representative from the Arab Bank of Syria.
The seminar reviewed a range of topics including a review of some of the URDG rules, drafting of the demand guarantee, issuing a demand guarantee, amendments to the demand guarantee text and guarantee operations, and application, testing, payment and completion processes. The revised rules came into effect on 1 July 2010.
In addition to banking professionals, a group of experts and financial managers also attended the seminar, as well as a number of employees in insurance and shipping companies. The URDG, the first in 19 years, is considered the balanced base to regulate the relationship between the beneficiary and the bank issuer of the demand guarantee. It identifies the bank guarantee commitment towards the beneficiary and clarifies the mechanism of the beneficiary claim of his right of the demand guarantee, and it clearly reflects the international practices followed in this regard.